The Garden was sold for $906.9 million to the joint establishment of MCL Land and Yanlord Land Group. This year, it was the 2nd biggest joint purchase. Freehold Condo, Tulip Garden consisted of maisonettes and 162 apartments along with two shops. It is conveniently located in the District 10, near the Good Class Bungalow area and Holland Village.
The biggest joint sale of the year was Pacific Mansion situated in River Valley. This estate was purchased by Hong Realty, GuocoLand, and Intrepid Investments. They paid total $980 million for the purchase of this land.
Moreover, this was the 4th try to sell the Tulip Garden. The estate was first sold in 2007 to the group by Bravo Building Construction. Unfortunately, the group canceled the purchase after they were unable to raise the funds. This is was because of the financial crisis. As a result of this, the company lost their deposit of $25.8 million as the owners of Tulip Garden kept the amount.
This real estate project was completed in the year 1985 and has a total area of 316, 708 sq. ft. The buyers of this estate have paid 20 .4% more than the reserve price of $753 million. According to reports, the owners were able to gain $100,000. It is believed that this time the process will be much smoother than the previous times.
According to the managing a director of Colliers International, this is a great opportunity for the redevelopment. Even after having sale deals in the Holland Road zone, the offer of Tulip Garden was attractive to let go. The key component that makes Tulip Garden attractive is its location.
It was reported that every owner of the unit can earn almost $4.3 million to $7.6 million. The prices are dependent on the size of the home they own. Mostly, the size of units varies between 1,701 and 3,412 sq. ft.
The sale price of the land is $1,790 per sq. ft. per plot ratio (psf ppr). The sale price for Tulip Garden is more than the other collective purchases. The sale price for Hollandia is $1,703 psf ppr, for Wilshire, it is $1,536 psf ppr, and price for The Estoril is $1,654.
According to Yanlord, the Tulip Garden estate can provide nearly 670 residential units. This is possible with the plot ratio is 1.6. This announcement was made after the trading hours in Singapore Exchange.
It was mentioned by Colliers that on the plot ratio of 1.6, no development charge is to be paid for redevelopment.
The Tulip Garden is the first project of Yanlord in the major freehold market of Singapore. Yanlord stated that the investments and development of this project will be funded by bank loans and by internal resources. Before the announcement was made, the shares of Yanlord increased by 2 cents reaching $1.75.
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